Guide Owning in Dubai
Dubai service charges explained
The yearly charge every Dubai owner pays for the building they share: what it covers, what it usually costs, who approves it, and what it does to your rental return.
Updated · 5 min read
What you pay for
Charged per sq ft of your unit each year, billed in advance, usually quarterly or every six months.
Usually included
- Cleaning, security and concierge for the shared areas
- Lifts, pools, gyms, landscaping and parking
- Building insurance for the structure and common parts
- A reserve fund for major repairs and replacements
- Management of the building and the owners association
Usually separate
- DEWA electricity and water for your own unit
- District cooling, in buildings that bill it separately
- Internet, TV and home contents insurance
- Repairs inside your own unit
Typical rates
| Property | Per sq ft, per year | What drives it |
|---|---|---|
| Mid-market apartments | Around AED 12–20 | Most towers in JVC, Business Bay, Dubai Marina and similar areas. |
| Prime and branded towers | Around AED 20–35+ | Hotel-style services, larger amenity decks and concierge push the rate up. |
| Townhouses and villas | Around AED 3–8 | Lower per sq ft because there is no tower to run, though plots are larger. |
Worked example
A 1,000 sq ft apartment bought for AED 1.5M and let for AED 110,000 a year has a gross yield of 7.3%. At AED 18 per sq ft, the service charge is AED 18,000 a year, which brings the yield to 6.1% before maintenance and empty months.
Before you buy
Four checks that stop a surprise bill.
- 01
Look up the approved rate
Every building's RERA-approved rate per sq ft is published on the Dubai Land Department's service charge index. Use it, not the brochure.
- 02
Ask for the statement
On a resale, ask for the unit's service charge statement. Arrears must be cleared before the developer issues the NOC.
- 03
Check what's billed separately
Find out whether district cooling is a separate bill, and whether a capacity charge applies even when the unit is empty.
- 04
Run the net yield
Take the annual charge off the rent before you compare buildings. A high charge can turn a strong gross yield into an ordinary one.
Service charges sit alongside the one-off costs in the real cost of buying. Letting the home out? Read renting out your property.
General guidance as of October 2026, not legal or financial advice. Rates are indicative and change every year, so check the approved figure for the building you're buying in.